1. Field of the Invention
The present invention relates to contracting between producers (such as farmers) and grain elevators, processors and end-use buyers (such as food companies). More particularly, though not exclusively, the present invention relates to method for electronically initiating and managing agricultural production contracts.
2. Problems in the Art
Typically, end-use buyers (for example, food processing companies) have contracted with grain producers to grow agricultural products (for example, high-oil corn varieties or other crops), often using seed from a number of seed firms. However, most forward contracting between end-use buyers and individual grain producers is labor-intensive and expensive.
At least one automated prior art system exists in the cotton trading industry. U.S. Pat. Nos. 5,063,507 and 5,285,383 describe commodity trading systems having a centralized computer database including title information for bales of cotton. The systems are used for assigning and transferring title to the goods, and for assigning an electronic warehouse receipt to the goods. The essence of these prior art systems resides in electronic title for each bale of cotton. This is possible because cotton markets assign unique ownership and quality control information to each bale. However, the notion of “title” is irrelevant to the system of the present invention (described below).
Other prior art patents of interest include: U.S. Pat. No. 5,678,041, METHOD FOR RESTRICTING USER ASSESS RIGHTS ON THE INTERNET; U.S. Pat. No. 5,706,502, INTERNET-ENABLED PORTFOLIO MANAGER SYSTEM AND METHOD; and U.S. Pat. No. 5,701,451, METHOD FOR FULFILLING REQUESTS OF A WEB BROWSER.
Above mentioned U.S. Pat. Nos. 5,063,507, 5,285,383, 5,678,041, 5,706,502 and 5,701,451 are incorporated by reference herein.
Features of the Invention
A general feature of the present invention is the provision of a method for electronically initiating and managing agricultural production contracts which overcomes problems found in the prior art.
A further feature of the present invention is the provision of a method for electronically initiating and managing agricultural production contracts using the Internet and commercially-available Internet Web browsers and Internet Web servers.
A further feature of the present invention is the provision of a method for electronically initiating and managing agricultural production contracts which allows parties to enter and view information relating to the contracts.
Further features, objects, and advantages of the present invention include:
A method for electronically initiating and managing agricultural production contracts which allows commodity suppliers to search for contract or program opportunities in a database that contains lists of contract types, end-buyers, crop varieties wanted or geographical locations of delivery including by zip code, county or other geographical descriptors.
A method for electronically initiating and managing agricultural production contracts which provides electronic allocation of target production quantities that are subsequently reduced as production contracts are completed.
A method for electronically initiating and managing agricultural production contracts in which delivery dates and methods from supplier to intermediary or end-buyer are electronically initiated and managed.
A method for electronically initiating and managing agricultural production contracts which allows contract parties to specify a contract as “pending” prior to a definite program market starting date at which time it will become legally binding.
A method for electronically initiating and managing agricultural production contracts in which quality measures of contracted and delivered product, determined by sampling and testing of lots either growing in the field or delivered, may be electronically entered and managed by suppliers, elevators or end-use buyers.
A method for electronically initiating and managing agricultural production contracts in which the price paid to the supplier is determined by measures of product quality or the delivery time and method which are agreed upon and entered electronically into the database.
A method for electronically initiating and managing agricultural products may be electronically contracted, including corn, soybeans, canola, sunflowers, wheat, cotton, beef, pork, poultry, fish, fruits, vegetables, honey, beets, horticultural varieties and other crops. For purposes herein, the terms agricultural commodities or agricultural products are intended to be broad and include plants, animals, or other products produced by persons or entities in the agribusiness and food industry.
A method for electronically initiating and managing agricultural production contracts which uses software-level security for accessing various parts of the contracting program application and databases.
A method for electronically initiating and managing agricultural production contracts which uses an RDMS (relational data base system) in conjunction with an Internet Web server.
These as well as other features, objects and advantages of the present invention will become apparent from the following specification and claims.